The Siemens subsidiary Healthineers is benefiting from the great demand for corona tests and is increasing its profit forecast. But the test business is likely to have peaked.
The medical technology group Siemens Healthineers has increased its forecast for the year after strong growth in the past quarter.
The Erlangen-based Siemens subsidiary was more optimistic on Friday, especially with regard to sales. The company is benefiting from exceptionally good business in its diagnostics division – thanks to the high demand for corona rapid tests mainly in Europe.
The strong momentum from the past quarters has continued, commented CEO Bernd Montag. As a result, Healthineers raised its forecast for the third time this fiscal year. Revenues on a comparable basis – i.e. adjusted for currency effects as well as acquisitions and sales – should now increase by 17 to 19 percent in the 2020/21 financial year (as of the end of September). So far, Healthineers had assumed up to 17 percent. With the corona rapid tests, the company now wants to raise one billion euros instead of 750 million euros. The company was also somewhat more confident with regard to adjusted earnings per share.
In the third quarter of the financial year, Healthineers was able to generate around 5 billion euros, thanks in part to the rapid antigen tests. That was 51 percent more than in the same quarter of the previous year, when the Corona crisis had burdened business. The takeover of US cancer specialist Varian, which was completed in April, contributed for the first time.
All areas contributed to the growth. The lion’s share of sales comes from the diagnostic imaging business, which includes computer tomographs. However, the diagnostics division stood out and was able to almost double its revenues. The core business has developed positively in the course of the normalization of the test volume for routine examinations, it said.
However, the proceeds from the rapid antigen tests, which amounted to around 600 million euros, provided a boost. This should mean that the business has reached its peak, said CFO Jochen Schmitz. A significant weakening can now be expected. In addition, there is a significant drop in prices for the tests.
Healthineers also earned significantly more. After taxes, profit rose by 46 percent to 395 million euros. The numbers exceeded the expectations of experts.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
